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Business, 10.08.2021 01:20 2020sanchezyiczela

Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $160,000 and each with an eight-year life and expected total net cash flows of $320,000. Location 1 is expected to provide equal annual net cash flows of $40,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $72,000 Year 5 $38,000 Year 2 54,000 Year 6 29,000 Year 3 34,000 Year 7 22,000 Year 4 51,000 Year 8 20,000 Determine the cash payback period for both location proposals.

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